Buy, Sell, Refinance: The state of Los Angeles real estate
"I've given up trying to guess where interest rates will go," said David Stiff, a senior economist with Fiserv CSW, a firm that tracks and forecasts housing prices.
In a recent article by CNNMoney it was explained that many in the real estate market feel the same.
Are home prices going to rise, going to drop? When?
Nobody really seems to know. Some are predicting higher prices, others are predicting a 20 percent drop in home values. For example an article in the Orange County Register warned "that researchers at Cal State Fullerton expect prices in the Los Angeles area county to fall as much as 20 percent in the next two years."
Other analysts are just amazed at the unpredictability of the current real estate market.
"I've been studying the market for ten years, and I'm always amazed by what a diversified market this is," said Delores Conway, director of the Casden Real Estate Economics Forecast at the University of Southern California Lusk Center for Real Estate.
"The strength or weakness of a housing market varies not just from one region to the next, but within any give metro. In Los Angeles, she noted, prices seem to be retreating in million-dollar neighborhoods, but there is still strong demand in areas where homes are selling for less than $500,000," added MoneyCNN.
While many expect Los Angeles to continue to increase it's property value for at least the next year, most don't see any serious bubble-bursting.
When mortgage rates begin to rise, the market should revalue to some extent, but when that happens, and the significance of that event is still to be determined.
"Greenspan has indicated that the Fed will be increasing rates at a measured pace, that means slow and steady," said Conway. "That gives the housing market time to digest any price gains."
"But we don't expect the magnitude of what we saw in the early 1990s, when high rates and rising unemployment had a doubling effect," added Conway. "The key is employment."
Interested in contacting Los Angeles area real estate agent?
In a recent article by CNNMoney it was explained that many in the real estate market feel the same.
Are home prices going to rise, going to drop? When?
Nobody really seems to know. Some are predicting higher prices, others are predicting a 20 percent drop in home values. For example an article in the Orange County Register warned "that researchers at Cal State Fullerton expect prices in the Los Angeles area county to fall as much as 20 percent in the next two years."
Other analysts are just amazed at the unpredictability of the current real estate market.
"I've been studying the market for ten years, and I'm always amazed by what a diversified market this is," said Delores Conway, director of the Casden Real Estate Economics Forecast at the University of Southern California Lusk Center for Real Estate.
"The strength or weakness of a housing market varies not just from one region to the next, but within any give metro. In Los Angeles, she noted, prices seem to be retreating in million-dollar neighborhoods, but there is still strong demand in areas where homes are selling for less than $500,000," added MoneyCNN.
While many expect Los Angeles to continue to increase it's property value for at least the next year, most don't see any serious bubble-bursting.
When mortgage rates begin to rise, the market should revalue to some extent, but when that happens, and the significance of that event is still to be determined.
"Greenspan has indicated that the Fed will be increasing rates at a measured pace, that means slow and steady," said Conway. "That gives the housing market time to digest any price gains."
"But we don't expect the magnitude of what we saw in the early 1990s, when high rates and rising unemployment had a doubling effect," added Conway. "The key is employment."
Interested in contacting Los Angeles area real estate agent?
0 Comments:
Post a Comment
<< Home